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- To calculate profit margin %, you need to123:
- Subtract the cost of goods sold (COGS), operating expenses, other expenses, interest (on debt), and taxes payable from the revenue. This gives you the net profit.
- Divide the net profit by the revenue. This gives you the net profit margin ratio.
- Multiply the net profit margin ratio by 100. This gives you the net profit margin percentage.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Formula and Calculation for Net Profit Margin
- On the income statement, subtract the cost of goods sold (COGS), operating expenses, other expenses, interest (on debt), and taxes payable.
- Divide the result by revenue.
www.investopedia.com/terms/n/net_margin.aspAll three have corresponding profit margins calculated by dividing the profit figure by revenue and multiplying by 100. Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods.
www.investopedia.com/ask/answers/031815/what-f…Margin Formulas/Calculations:
- The gross profit P is the difference between the cost to make a product C and the selling price or revenue R. P = R - C
- The mark up percentage M is the profit P divided by the cost C to make the product. ...
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